NSE Symbol: MRF | BSE Code: 500290
MRF is considered to be a giant of tire manufacturer in India and it is ranked amongst the Top 20 Global Manufacturers, with nine state-of-the-art facilities across India. It is also India's greatest Original Equipment Manufacturer (OEM) tire supplier with an extensive tire range from two-wheelers to fighter aircraft. The company's production facilities are located at Kottayam in Kerala, Medak in Andhra Pradesh, Trichy, Tiruvottiyur and Arakonam in Tamil Nadu, Ponda in Goa and Union Territory of Pondicherry.
MRF Share: History and Trends
MRF Ltd was instituted in 1946 by K M Mammen Mappillai as a modest toy ballon unit. In November 1960, the company attempted the manufacturing of tires by starting a technical collaboration with Tire & Rubber Company, USA. In 1964, the company commissioned its core plant. Furthermore, they established an overseas office at Beirut, Lebanon to penetrate the export market. In 1967, the company became the first Indian company to export tires to the USA. In 1980, the company joined a technical collaboration with the B. F. Goodrich Tyre Company, the USA which paved the path to an essential exercise in the new product development and quality enhancement. They launched Nylogrip tires for two-wheelers in 1985 and also introduced Legend, which is a premium segment Nylon Car Tyre in 1987. In 1989, the company collaborated with Hasbro International USA, the world's biggest toy maker and launched Funskool India. Additionally, they started a pact with Vapocure of Australia to produce polyurethane paint formulations and also with Pirelli for MUSCLEFLEX conveyor and elevator belting. In 1996, they started a factory that was consecrated entirely for the manufacture of radial tires at Puducherry. In 1999, the company was awarded as the most Ethical Company in India by the Business World magazine.
In 2004, the company secured a tie-up with Maruti Udyog to encourage motorsports in India. In the year 2004-05, the product range of the company opened up with Go-Kart & Rally tires and tires for two/three wheelers. The company won the TOP Export Awards from CAPEXIL as well as AIRIA in the same year.
In 2007, the company launched a premium truck tire, Super Lug 50-FS. In May 2008, the company signed a MoU with the government of Tamil Nadu for new MRF plant to be positioned at Perambulur and also for the extension of their existing plants in Tamil Nadu.
In the year 2009-10, the company augmented the installed capacity of Automobile Tyres from 28,450,000 Nos to 31,700,000 Nos. Additionally, they expanded the installed capacity of Automobile Tubes from 29,700,000 Nos to 31,600,000 Nos. They began two popular tires, namely MRF Meteor, a bike tire for both tarmac and dirt; and the MRF Steel Muscle S3K4 truck radials for excellent mileage on various road conditions. Moreover, they concluded the Ankenpally project at Medak district, Andhra Pradesh. In the same year, the company won the All India Rubber Industries Associations (AIRIA) honor for Highest Export Awards (Auto Tyre Sector) section and Top Export Award from Chemicals & Allied Products Export Promotion Council (CAPEXIL) for the year 2009-10. During the year 2010-11, the company began new products namely MRF Meteor M, MRF Z.L.O, and MRF Steel Muscle 53C8. The company renamed the Speciality Coatings Division to MRF Corp Ltd, which a 100% subsidiary of the company. Furthermore, the company won the All India Rubber Industries Associations (AIRIA) award for the Highest Export Awards (Auto Tire Sector) category and Top Export Award from Chemicals & Allied Products Export Promotion Council (CAPEXIL) for the year 2010-11. In 2011, MRF commissioned its eighth plant for the manufacture of conventional tires in Trichy, Tamil Nadu. In 2012, MRF commissioned its 9th plant in Trichy, Tamil Nadu only for the manufacture of Radial Tyres. In 2014, the company was Awarded for sustained outstanding performance in Original Equipment Tire Satisfaction. The company also endorsed a historic five-year agreement with the BCCI. The company declared its association as Global Partner for ICC Cricket World Cup 2015. The company Ranks the highest in overall customer satisfaction for a fifth progressive year, according to JD Power Asia Pacific 2014.
In 2015, the company also signed a MoU with the Government of Tamil Nadu to invest roughly 4500 crores in Tamil Nadu in its plants at Perambalur and Arakonam in Tamil Nadu for seven years. The company occupies a spot in The Forbes India's Super 50 list of Indian Companies.
On 22 July 2016, MRF proclaimed that credit rating agency ICRA Limited had enhanced the Credit Rating for the company's Non-Convertible Debenture (NCD) Programme in their yearly monitoring from [ICRA] AA+ to [ICRA] AAA for Non-Convertible Debentures of 500 crores issued in 2011.
On 11 January 2017, MRF signed a MoU with the Government of Gujarat revealing its in-principle purpose of starting a new manufacturing facility in Gujarat for manufacture of automotive tyres, tubes, flaps and related products. The Company intended to invest about 4500 crores over a span of ten years in distinct phases. The new plant is designed to be set up in Gujarat with the purpose of broad-basing the Company's manufacturing facilities across the country.
Should You Buy MRF share?
MRF Limited, along with its subsidiaries, manufactures, distributors, and trades rubber products in India and globally. The company was instituted in 1946 and with the company’s market capitalization at â‚¹332.62 billion, we can place it in the mid-cap group. Usually, large-cap stocks are well-resourced and well-established which means that a bear market will cause it to alter some short-term capital allocations, but the stock market volatility is hardly harmful to the financial health and business operations of the company. Therefore, large-cap stocks are dependable shares where you can invest safely to purchase more of the shares when the broader market is going down and down.
MRF is India’s largest tire maker, with its business interests also spreading to paints, sports goods, rally sports, and toys. In March, the company has a market capitalization of more than 25,000 crore rupees (3.8 billion USD). Since the beginning of the millennium, its shares had surged 50 times from 1,218 rupees in January 2001. Between January 2016 and March 2017, the stock had risen about 48% from 40,546 rupees to 60,000 rupees.
Based on these factors, MRF makes for a robust long-term investment in the face of a whimsical stock market. If you are a risk-averse investor, aligning your portfolio with proven companies which you wish to buy more of even as the price collapses, is a good strategy to build your wealth in the long run.